Buying
a Home...
Why
You Should Not Make Any Major Credit Purchases
Don't go on a spending spree using credit if you are thinking
about buying a home, or in the process of buying a new home.
Your mortgage pre-approval is subject to a final evaluation
of your financial situation.
Every
$100 you pay per month on a credit payment could cost your
about $10,000 in home eligibility. For example, a car payment
of $300/month could mean that you qualify for $30,000 less
in a mortgage.
Even
if you have accumulated enough savings, you should considering
not making any large purchases until after closing. The last
thing you want is to know that you could have purchase a new
home had you curbed the urge to spend.
Getting
a Legitimate Lender and Getting Pre-Approved
It used to be that buyers could go house shopping and when
they have found their dream home, then they go to get pre-approved.
However, in today's market, that has proven to be one of the
least effective methods in landing the dream home.
Most
lenders can pre-qualify you for a mortgage over the phone.
Based on general questions about your income, debt, assets,
and credit history, lenders can estimate how much mortgage
you qualify for. However, being pre-qualified and pre-approved
are different things. Pre-approval means that you have applied
for a mortgage; you have filled out the mortgage application,
received your credit report, and verified your employment,
assets, etc. When you are pre-approved, you know exactly what
the maximum loan amount will be.
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